Worried that the tech stock sell-off that’s rattled markets in recent weeks is the beginning of the end for the AI boom?
Don’t be, says Raheel Siddiqui, senior investment strategist at Neuberger Berman, which manages $460 billion.
Siddiqui told Business Insider on Monday that while the sell-off isn’t quite finished, and could continue over the next few weeks amid timid positioning from fund managers, investors should be ready to buy the dip if such a scenario plays out.
That’s because the recent pullback has been driven by falling liquidity, not fundamental weakness in the stocks leading the AI charge, he said. Earnings should remain strong, Siddiqui predicted, and liquidity should improve as fiscal and monetary stimulus picks up in 2026.
“I think there’s more risk, maybe next two to three weeks, and then that would be a great opportunity to buy,” Siddiqui said.
“Because it’s a liquidity-driven environment, very positive on tech,” he continued. “While fundamental earnings growth is a sector story, valuation of tech is a macro story.”
In other words, stocks are generally falling due to macroeconomic factors beyond companies’ control, not because their fundamentals are poor. Once those outside factors improve, tech stocks should break out to the upside.
Last week, some market pros pointed to the crypto sell-off as a potential reason for the slump that’s dragging stocks down. As crypto prices fall, investors could be forced to raise cash by selling their stocks in order to meet margin calls.
“We attribute some of today’s stock market selloff to the ongoing plunge in bitcoin’s price,” said Ed Yardeni, the founder of Yardeni Research, in a note last week. “There has been a strong correlation between it and the price of TQQQ, an ETF that seeks to achieve daily investment results that correspond to three times (3x) the daily performance of the Nasdaq-100 Index (chart).”
Yardeni continued: “It’s possible that the rout in bitcoin is forcing some investors to sell stocks that they own.”
One caveat that Siddiqui noted is that 2026 is a midterm election year, which tend to be volatile, usually seeing double-digit peak-to-trough percentage declines in the S&P 500.
Some funds that offer exposure to tech stocks include the Vanguard Information Technology ETF (VGT) and the Technology Select Sector SPDR Fund (XLK).
